The Nordic weather forecasts made it increasingly clear that a weather change was under way last week. Following several weeks of temperatures below normal, the level is now expected to be around 3-4 degrees above average from the middle of week six. These changes resulted in significant price falls across the Nordic energy market last week. The Q2-19 contract has fallen by EUR 3.60/MWh (approximately 7.5%) to EUR 43.90/MWh, while the YR-20 contract has fallen by EUR 1.61/MWh and is now trading at a price of EUR 36.90/MWh.
Read Focus here.
The European carbon emission market has made a new big price jump, and we could see the price on a CO2 quota break above 30 EUR/t in the near future.
We experienced a clear change to the Nordic weather forecasts last week, and the rest of July now looks set to be very dry. This has caused Nordic energy prices to climb, especially in the short-term forward market.